An inheritance tax waiver

One way to avoid this tax is to get an inheritance tax waiver. This form allows the stocks to be transferred without inheritance tax being taken out of the value of the stocks.

For Those Who Have Inheritance

If you have inherited assets from a deceased family member, you may think you are exempt from taxes on your inheritance, but you may still have to pay taxes on any accounts you have inherited. Often, state tax on inheritance will be paid by the beneficiaries of the estate, rather than out of the estate itself.

How to Delay Taxes on an Inherited IRA

If you have inherited an IRA, some or all of the money in the IRA will be subject to income taxes, depending on what you do with the account. If you are the spouse of the deceased, there are less penalties and taxes that are applied to your inherited IRA. As a spousal beneficiary, you can roll your IRA over into your own account or keep the account as a beneficiary. Rolling over your account will help you avoid paying a large amount of taxes.

If you have an inherited IRA as a beneficiary who is not the spouse of the original account holder (sometimes called a non-spouse beneficiary), your inherited IRA works much like a typical IRA. Distributions from the account can be subject to income tax, and you will be required to take out distributions from the account once per year. These are called Required Minimum Distributions, and they are usually based on the life expectancy of the beneficiary. Taking out only these Required Minimum Distributions will keep you from paying a large lump sum in income taxes. After five years have passed, you may be able to take larger distributions without penalty or additional taxes, but you should check with your IRA holder.

Oxford Investment Partners is a comprehensive financial services firm committed to helping you to improve your inheritance tax threshold

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